Keppel unit divests stake in Keppel Smit Towage, Maju Maritime for S$133m

KS Investments, a wholly-owned subsidiary of Keppel Offshore & Marine (Keppel O&M), is divesting its entire 51 per cent stake in each of Keppel Smit Towage and Maju Maritime, for an aggregate cash consideration of S$133 million.

The divestments, to Rimorchiatori Mediterranei Spa, are part of Keppel O&M's strategic review to streamline and divest its non-core assets, in line with Keppel Corp's Vision 2030 plans, Keppel Corp said in a bourse filing on Monday (Nov 15).

Keppel Corp BN4 expects to recognise a divestment gain of around S$72 million from the transaction.

On a pro forma basis, had the divestments been completed on Dec 31, 2020, net tangible asset per share as at Dec 31, 2020 would have increased to S$5.06 from S$5.02. Had the divestments been completed on Jan 1, 2020, loss per share for FY2020 would have reduced to S$0.24 from S$0.278.

The divestments are expected to be completed in 2022, following which the sale companies will cease to be subsidiaries of Keppel Corp.

The aggregate consideration was arrived at taking into account the sale companies' enterprise values, financial positions and business prospects, book value and net asset value attributable to the sale shares, both of which were around S$60.8 million as at Oct 31, 2021.

Shares of Keppel closed at S$5.29 on Friday (Nov 12), up S$0.01 or 0.2 per cent.

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